May 16, 2016

Summary of Consolidated Financial Results for the Year Ended March 31, 2016
Company name:

SRA Holdings, Inc.
(URL: http://www.sra-hd.co.jp/)
Tokyo Stock Exchange

Stock listing:Code number:President:
For inquiries, please contact:
Tel:

3817
Toru Kashima
Toshiaki Kobayashi, General Manager, Finance Department, Administrative Headquarters(03)-5979-2666
Date of ordinary general meeting of shareholders:June 24, 2016
Scheduled commencement of dividend payment:
June 10, 2016
Scheduled date of submission of financial reports:
June 24, 2016
Results Supplement Materials: Yes
Results Presentation Meeting : Yes (for institutional investors)

1. Consolidated Financial Results for Fiscal 2016(from April 1, 2015 to March 31, 2016)(1) Consolidated Operating Results(All amounts rounded down, % change YoY)Net Sales

Fiscal 2016
Fiscal 2015

Operating Income

Ordinary Profit

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

39,15536,535

7.2
4.0

3,736
3,047

22.6
8.5

3,850
3,813

1.0
14.7

463
1,638

(71.7)(23.2)

Note：Comprehensive Income
Fiscal 2016: ¥761million ((67.9％)）
Fiscal 2015: ¥ 2,373million ((9.8％)）
Net Income
per Share

Yen

Ratio of Net Income
to Shareholders’Equity
%

38.17
－

2.5
9.1

Net Income per Shareafter Dilution

Yen
Fiscal 2016
38.40
Fiscal 2015
136.34
Reference: Gain (loss) on equity method investments:
Fiscal 2016: ¥12 million
Fiscal 2015: —Ratio of Ordinary
Profit to Total Assets

Ordinary Profit
Ratio

%

%

12.1
12.5

9.5
8.3

(2) Consolidated Financial Position
Millions of yen%

Shareholders’ Equity
per ShareYen

18,81918,85959.0
59.4

1,549.46
1,565.05

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at the End of Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,493
3,290

(2,809)(1,626)
192

(616)
(932)

8,833
8,792

Total Assets

Net Assets

Millions of yen
Fiscal 2016
31,823Fiscal 2015
31,714
Reference: Shareholders’ equity
Fiscal 2016: ¥ 20,629 million
Fiscal 2015: ¥18,834 million

Shareholders’ Equity Ratio(3) Consolidated Cash Flows

Fiscal 2016
Fiscal 2015

2. Dividends
Dividend per Share
End ofFirst
Quarter
Fiscal 2015
Fiscal 2016
Fiscal 2017(forecast)End ofSecondQuarter

End ofThird
QuarterYear-end

For theyear

Total
Dividends(for the year)

Dividend
Propensity(consolidated)

Net Assets to
Dividend
Ratio(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

－
－
－

17.00
25.00
30.00

－
－
－

38.00
45.00
55.00

55.00
70.00
85.00

661
847

40.3
182.3
38.6

3.7
4.5

1

3. Consolidated Earnings Forecast for Fiscal 2016 (from April 1, 2015 to March 31, 2016)

Net Sales（% change YoY is for the fiscal year or for interim period）
Profit attributable to owners Net Income
Ordinary Profit
per Shareof the parent

Operating Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

18,32040,000

1.5
2.2

1,742
3,940

13.2
5.4

1,834
4,125

9.8
7.1

1,186
2,667

22.8
475.2

97.80
219.93

Interim Period
Full Year

4. Others(1) Changes to significant subsidiaries during the current period :Yes

Note: Changes in specified subsidiaries during the current period that caused changes in the scope of consolidation

Exclusion: CreDist, Inc.
(2) Changes in accounting principles, changes in accounting estimates, and restatements
1. Changes caused by revision of accounting standards, etc. :Yes
2. Changes other than 1. above:No
3. Changes in accounting estimates:
No
4. Restatements:
No(3) Number of outstanding shares (common shares)
1. Shares issued at the end of term (including own shares)
Fiscal 2016: 15,240,000 sharesFiscal 2015: 15,240,000 shares
2. Own shares at end of term
Fiscal 2016: 3,113,555 sharesFiscal 2015: 3,205,445 shares
3. Average number of shares over period
Fiscal 2016: 12,074,881 sharesFiscal 2015: 12,016,780 shares（Reference）Non-Consolidated Financial Results for Fiscal 2016
(1) Non-Consolidated Operating Results
Net Sales

Fiscal 2016
Fiscal 2015

Operating Income(% change YoY)
Ordinary Profit

Millions of yen%

Millions of yen%

Millions of yen

%

257
756

(66.0)(70.2)
(3.9)

38
519

(92.5)(76.7)

21498(95.6)(77.5)Net Income
per Share
Fiscal 2016
Fiscal 2015

(from April 1, 2015 to March 31, 2016)
Net Income
Millions of yen

(0)
181

%

(100.1)(91.6)Net Income per Shareafter Dilution

Yen

Yen

(0.01)
13.75(0.01)－(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

8,987
8,679
9,190
9,164
Reference: Shareholders’ equity:
Fiscal 2016: ¥ 8,648 million
Fiscal 2015: ¥ 9,139 million
Fiscal 2016
Fiscal 2015%

Shareholders’ Equity
per Share
Yen

96.2
98.4

649.47691.08

Shareholders’ Equity Ratio

Note: Forecast performance is predicted by the Company based on information currently available at the time of theforecast. Actual financial results may differ due to a number of factors.

2

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

1. Analysis of Business Results and Financial Position(1) Analysis of Business Results(Business results for the fiscal year)
During the fiscal year (April 1, 2015 to March 31, 2016), the Japanese economy continued a moderate recovery
underpinned by brisk personal consumption, capital investment that remained generally unchanged and an
improvement in corporate earnings.
In the information services industry, despite an increase in IT investments, mainly in manufacturing industries
and the banking industry, the environment for securing orders remained severe due to intensifying competition.
Within this business environment, the SRA Holdings Group formulated a Medium-Term Management Strategy thatcovers the three-year period from fiscal 2016 through fiscal 2018 (from the fiscal year ending March 2016 to thefiscal year ending March 2018). Under this plan, we will seek to enhance corporate and shareholder value, promoteearnings structure reform and establish a high-income model, while working to further enhance shareholder returns.
Accordingly, we will implement the following measures under the Medium-Term Management Strategy. (For asummary of the Medium-Term Management Strategy, please refer to Announcement of Medium-Term Management
Strategy released on June 24, 2015 http://www.sra-hd.co.jp/Portals/0/ir/index-en.html).
1) Improving profitability in existing operations• Further raise the gross profit margin
We worked to raise profitability by enhancing and strengthening project management, continuously reduce
production overhead costs, carry out SRA’s proprietary IP product business and promote the appropriate level ofproduction staff. As a result, the gross profit margin rose 0.9 percentage point to 19.2% compared with the same
period of the previous fiscal year.
• Improve the ratio of selling, general and administrative costs to sales (SG&A-to-sales ratio)
We strived to raise operation efficiency by introducing an account manager system while working to reduce
operational costs of Head Office staff departments and SRA Professional Service, Co., Ltd., which handles a sharedservice. As a result, the SG&A-to-sales ratio improved to 9.7%.
• Raise operating income ratio
The operating income ratio reached a record high of 9.5 %. Additionally, the operating income ratio at core company
Software Research Associates, Inc. (SRA) and at Advanced Integration Technology, Inc. (AIT) also rose to record
highs.
• Expand orders and sales volume
A priority measure will be to increase customer share of wallet by deeply cultivating existing customers, and in doing
so, we worked to expand orders and sales. As a result, domestic Group companies, beginning with SRA generallyachieved increases in revenues.
Additionally, we deployed the “project management structure,” which was previously implemented at SRA, at all
Group companies in Japan. As a result, we built a system that can respond in advance to a shortage of projects.
2) Transforming the SRA business model• Regarding “transforming the SRA business model,” in wearable solutions, which have recently attracted a high levelof attention, we have commenced such initiatives as the “inspection work confirmation system” that leverages our3Summary of Consolidated Financial Results for the Year Ended March 31, 2016high technological strengths and our wealth of experience in “embedded development” and utilizes wearable devices
such as smart glass.
• We also made group-wide efforts to target higher added value in existing operations.
3) Strengthening links between SRA’s proprietary IP product business and overseas operations• We raised the gross profit margin sharply by promoting SRA’s proprietary IP product business in the Product Sales
business, which has a low gross profit margin compared with the Systems Development business and the System
Operations and Infrastructure Development business. “Qt,” which boasts an extensive track record in embedded andmobile application building, recorded growth in both sales and profits. In the future, plans call for also proactively
developing the Qt business in the field of Internet of Things (IoT), which is gaining a high degree of attention.
・In April 2016, SRA concluded a business alliance and capital alliance with Tagit Pte. Ltd. (headquartered in
Singapore) to develop the mobile business, a promising field, targeting overseas growth markets beginning with Asia.
These alliances were also formed as part of efforts to strengthen SRA’s proprietary IP product business and overseas
operations. For detailed information, please refer to http://www.sra-hd.co.jp/Portals/0/ir/others/20160414.pdf(Japanese only).
Due to the above initiatives, our consolidated business results for the fiscal year were as follows.
Sales of the Systems Development business, the System Operations and Infrastructure Development business andthe Product Sales business all increased. As a result, consolidated net sales amounted to ¥39,155 million, a 7.2%
increase from the previous fiscal year.
At the profit level, due to an increase in gross profit accompanying growth in sales and an improvement in the profit
margin as well as a streamlining of selling, general and administrative (SG&A) expenses, operating income rose
22.6% from the previous fiscal year to ¥3,736 million while ordinary profit increased 1.0% from previous fiscal yearto ¥3,850 million. A loss on valuation of investment securities and provision of allowance for doubtful accounts wererecorded as an extraordinary loss. As a result, profit attributable to owners of the parent amounted to ¥463 million, a
71.7% decrease from the previous fiscal year.
As detailed above, profit attributable to owners of the parent decreased due to the recording of extraordinary
losses. Although profit attributable to owners of the parent declined below the full-year forecast, net sales, operating
income and ordinary profit exceeded the forecast.
Consolidated Business Results(Millions of Yen)FY2015FY2011FY2012FY2013

FY2014

Most recent forecast
figures(announced
May 14, 2015)

ActualNet sales

33,41632,16835,14636,53537,30039,155

Operating income

2,490

2,436

2,807

3,047

3,360

3,736

Ordinary profit

2,656

2,883

3,324

3,813

3,450

3,850

Net income

1,233

1,681

2,134

1,638

2,260

463

A summary of consolidated business results for the fiscal year by business segment is shown below.
4Summary of Consolidated Financial Results for the Year Ended March 31, 2016

● Systems Development
The Systems Development business recorded increases in sales to the manufacturing, banking, electric power anddistribution sectors. As a result, net sales increased 8.4% from the previous fiscal year to ¥20,901 million.
● System Operations and Infrastructure Development
University-related orders were virtually flat, but orders from companies increased. As a result, net sales of the System
Operations and Infrastructure Development business increased 2.2% from the previous fiscal year to ¥3,978 million.
● Product Sales
AIT posted an increase in device sales. As a result, net sales of the Product Sales business rose 6.9% from theprevious fiscal year to ¥14,275 million.

(Outlook for the Next Fiscal Year)In the next fiscal year, the Japanese economy is expected to move toward a modest recovery due in part to the effectsof various policies amid continued improvements in corporate earnings and in the employment and income
environments. Nevertheless, there is visible weakness in overseas economies and there is a risk that this could pushdown the Japanese economy.
Under these conditions, the SRA Holdings Group will aim to reform its earnings structure (establish ahigh-earnings model) and will work toward “Improving profitability in existing operations (raise the gross profit
margin and improve the SG&A-to-sales ratio),” “Transforming the SRA business model” and “Strengthening links
between SRA’s proprietary IP product business and overseas operations.”
Regarding the outlook for consolidated results for the fiscal year ending March 2017, while implementing theabove measures, we forecast net sales of ¥40,000 million, operating income of ¥3,940 million, ordinary profit of¥4,125 million and profit attributable to owners of the parent of ¥2,667 million.
(2) Analysis of Financial Position
Total assets at the end of the fiscal year amounted to ¥31,823 million, an increase of 0.3% from the end of theprevious fiscal year. Total liabilities increased 1.2% from the end of the previous fiscal year to ¥13,004 million andnet assets decreased 0.2% to ¥18,819 million from the end of the previous fiscal year. Details of the principal
increases and decreases from the end of the previous fiscal year are as follows.
(Total Assets)
Investment securities increased ¥1,569 million to ¥5,746 million due to the purchase of shares of an affiliatedcompany. Notes and accounts receivable—trade increased ¥660 million to ¥6,884 million due to such factors as a risein contracted development projects. On the other hand, allowance for doubtful accounts increased ¥1,269 million to¥1,282 million and work in process decreased ¥289 million to ¥1,387 million.
(Total Liabilities)
Accrued expenses increased ¥217 million to ¥811 million. On the other hand, provision for loss on construction
contracts decreased ¥247 million to ¥415 million and accounts payable—trade decreased ¥176 million to ¥3,288
million due to an increase in the payment of trade payables.

5

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Total Net Assets)
Valuation difference on available-for-sale securities increased ¥397 million to ¥992 million due to changes in themarket prices of marketable and investment securities. On the other hand, retained earnings decreased ¥498 million to¥14,790 million.

Cash and cash equivalents on a consolidated basis at the end of the fiscal year increased ¥40 million comparedwith at the previous fiscal year-end to ¥8,833 million.
The status of cash flows and factors underlying changes in cash flows for the fiscal year are shown below.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥3,493 million compared with ¥3,290 million in the previous
fiscal year. This consisted mainly of such cash inflows as income before income taxes and minority interests of¥1,899 million, an increase in allowance for doubtful accounts of ¥1,261 million, and a loss on valuation of
investment securities of ¥656 million, while cash outflows were primarily an increase in notes and accounts
receivable—trade of ¥678 million.
Cash Flows from Investing Activities
Net cash provided by investing activities amounted to ¥2,809 million (used in investing amounted to ¥2,809 million)
compared with net cash used in investing activities of ¥1,626 million in the previous fiscal year. This consisted
mainly of such inflows as ¥300 million in proceeds from sales of short-term investment securities, while outflows
included ¥1,423 million for purchase of investment securities, ¥800 million for purchase of intangible assets and ¥597
million for payments of loans receivable.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥616 million compared with ¥932 million in the previous fiscal year.
This was due mainly to such cash inflows as ¥143 million in proceeds from exercise of stock option and such cash
outflows as ¥759 million in cash dividends paid.
Cash Flow Indicators
FY2013

FY2014FY2015

Shareholders’ equity ratio (%)
Shareholders’ equity ratio at market value (%)

57.7

59.4

59.0

56.0

62.8

98.7

Debt redemption years to cash flow (years)

0.7

0.4

0.3

Interest coverage ratio (times)

83.9

131.6

117.2

Notes:
Shareholders’ equity ratio: Shareholders’ equity/total assets
Shareholders’ equity ratio at market value: Market capitalization/total assets
Debt redemption years to cash flow: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest expenses
1. All indicators were calculated using consolidated financial figures.
2. Market capitalization is calculated using the total number of shares outstanding at the end of the fiscal period
excluding treasury stock.
6

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

3. Cash flows from operating activities is used for cash flow.
4. Interest-bearing debt includes all debt that pays interest as listed on the Consolidated Balance Sheets.
(3) Basic Policy on Profit Allocation and Dividends for the Fiscal Year under Review and the Next Fiscal Year
The Company’s basic policy with respect to dividends is to actively make business investments for securing earnings
power and growth potential with the aim of increasing the corporate value of the SRA Holdings Group. Under the
Medium-Term Management Strategy, to further enhance shareholder returns, the Company will strive to“incrementally raise the target payout ratio, aiming for 50% in the final year (period ending March 2018)” and“achieve a stable, sustained ROE—an indicator of efficient utilization of shareholder equity—of at least 10%.
Regarding dividends for the fiscal year ended March 31, 2016, net sales, operating income and ordinary profit in
our main business exceeded our full-year forecast. Therefore, to further enhance the redistribution of profits toshareholders the Company will increase ordinary dividends per share by ¥15.00 and pay cash dividends per share of¥70.00 (consisting of a ¥25.00 interim dividend and a ¥45.00 year-end dividend).
Regarding dividends for the fiscal year ending March 31, 2017, we plan to increase ordinary dividends per shareby ¥15.00 and pay cash dividends per share of ¥85.00 (consisting of a ¥30.00 interim dividend and a ¥55.00 year-end
dividend). In the event that these dividends are paid, the consolidated payout ratio is expected to be 38.6%.
We also regard the acquisition of treasury shares as an effective means of redistributing profits to shareholders.
Accordingly, we make such acquisitions appropriately while considering such factors as our stock price trends andfinancial condition.
(4) Business and Other Risks
The following principal risks could have an impact on the business results and financial condition of the Company as
the SRA Holdings Group’s controlling company.
“Forward-looking” statements contained in this report represent judgments by the SRA Holdings Group basedon information currently available to management as of the end of the fiscal period.
[1] Risk of fluctuations in business results of Group companies
An abrupt fluctuation in business results of Group companies due to various factors could have an adverse impact on
the Company’s business results.
[2] Maintaining confidentiality of customer information
In addition to being aware that it is an information processing company with numerous opportunities for handlingpersonal information, the SRA Holdings Group also sufficiently recognizes the critical nature of protecting personal
information, and thus, has established an internal monitoring structure. Concurrently, the SRA Holdings Group
provides education for its Group employees and business partners and makes efforts to protect personal information.
However, in the event of the unexpected leakage of information, besides losing the trust of business partners, the SRA
Holdings Group could become liable for payment of compensatory damages, which could have an effect on the SRA
Holdings Group’s business results.
[3] Overseas Business Investments
As part of its business strategy, the SRA Holdings Group implements a policy of utilizing its “global reach,” which isa strength, and actively makes business investments that include forming business and capital alliances with local
companies and carrying out M&A with the aim of cultivating overseas growth markets.
When making business investments, besides implementing preliminary surveys, the Company sufficiently
7

Summary of Consolidated Financial Results for the Year Ended March 31, 2016exchanges opinions with the management teams of the companies in which we invest. Following the investment as
well, we regularly manage the state of progress of businesses.
Nevertheless, the Company’s overseas businesses could inevitably be exposed to country risk due to factors suchas unforeseen rapid public unrest, market deterioration and exchange rate volatility or differences in politics, cultures,
systems, laws and business practices. Additionally, there is a possibility of changes of the management team, capital
structure and business strategies of investee companies. Such factors could prevent the Company from realizing
expected profits and lead to losses that could have an impact on the Company’s business results.
In addition to the above, the Company comprehensively incurs business and other risks of the SRA HoldingsGroup, which consists of SRA, a main subsidiary, and its subsidiaries.
The following principal risks could have an impact on the business results and financial condition of the SRA
Holdings Group.
[1] Responses of business partners when production volume fluctuates
In the Systems Development and the System Operations and Infrastructure Development businesses, besides its own
in-house engineers, the SRA Holdings Group utilizes business partners for the planned augmentation of its staff ofin-house engineers and expansion of business, as well as to augment those areas where it does not possess
technologies and to respond flexibly to changes in production volumes during peak production.
The SRA Holdings Group also utilizes business partners as one means of reducing production costs.
Nonetheless, in the event of a sudden unforeseen fluctuation in production volume, the inability to secure enoughbusiness partners possessing requisite skills or to arrange for business partners to take timely action could have an
impact on the SRA Holdings Group’s business results.
[2] Project profitability in Systems Development
In the core Systems Development business, the SRA Holdings Group concludes bulk subcontracting contracts,
whereby it handles the entire system development and is responsible to its customers for completion. Therefore, evenfor projects for which a certain amount of income is expected at the time the order is received, there are instances
when profitability worsens because of such factors as customer requests for specification changes after commencing
development activities or a work process that exceeds the initial estimate. Moreover, incurring additional expenses
such as those related to defect guarantees after the confirmation of sales could result in lower profitability.
To prevent the occurrence of these projects, the SRA Holdings Group reviews risk factors at the time an order isreceived and works to improve the precision of its estimates while strengthening its project management structure inan organized manner. Nevertheless, any project incurring a large loss could have an effect on the SRA HoldingsGroup’s business results.
[3] Maintaining confidentiality of customer information
Along with being aware that it is an information processing company with numerous opportunities for handlingpersonal information, the SRA Holdings Group also sufficiently recognizes the critical nature of personal information,and thus, has established an internal monitoring structure. Concurrently, as a company that has acquired Privacy Markcertification, the SRA Holdings Group provides education for its Group employees and outsourced staff and makes
efforts to protect personal information. However, in the event of the unexpected leakage of information, besides
losing the trust of business partners, the SRA Holdings Group could become liable for payment of compensatory
damages, which could have an effect on the SRA Holdings Group’s business results.

8Summary of Consolidated Financial Results for the Year Ended March 31, 2016

2. Management Policy(1) The Company’s Basic Management Policy
The SRA Holdings Group adheres to a basic management policy of maximizing user satisfaction through IT based on
its management principle of “contributing to the future of humanity through professional practice that fosters progressin the fields of computer science,” which has been our guiding principle since the founding of SRA. In accordancewith this basic management policy, amid a rapidly changing business environment, we will strive to meet the
expectations of the information services industry while raising profits for shareholders and increasing corporate value
by pursuing profitability and growth.
Regarding the management of the SRA Holdings Group, under our management vision of “creating new value
together with people through a global perspective and technologies,” we will raise the overall capabilities of the SRA
Holdings Group with the aim of enhancing corporate value.
(2) Management Indicator Targets
The SRA Holdings Group has adopted “operating income margin” as a representative indicator of the Company’s
overall earnings power and has set the medium- and long-term numerical target of quickly attaining and maintaining
an operating income margin of 10% or higher.”Also, the SRA Holdings Group continues to use return on equity (ROE) as an indicator of efficient deploymentof shareholders’ equity. The SRA Holdings Group has established the numerical target of “attaining and maintaining
double-digit consolidated ROE.”
The SRA Holdings Group’s consolidated operating income margin and ROE are as shown below.
Consolidated operating income margin

Consolidated ROE

FY2011 (actual)

7.5%

7.9%

FY2012 (actual)

7.6%

10.2%

FY2013 (actual)

8.0%

12.4%

FY2014 (actual)

8.3%

9.1%

FY2015 (actual)

9.5%

2.5%

FY2016 (target)

9.9% (plan)

13.6% (plan)(3) Medium- and Long-Term Management Strategy
The SRA Holdings Group is currently implementing its Medium-Term Management Strategy covering the three-year
period from fiscal 2015 (year ending March 2016) through fiscal 2017 (year ending March 2018). The orientation ofthis strategy is as follows.
1. We will enhance corporate and shareholder value, promote earnings structure reform (secure the industry’s top
level operating profit ratio), and establish a high-income model, while working to further enhance shareholder returns.
Our management tasks for attaining this target are as follows.
1) Raise the profitability of existing businesses• Further raise the gross profit margin and improve the SG&A-to-sales ratio2) Transforming the SRA business model• Promote convergence between SRA’s proprietary IP product business and higher added value in existing operations.
• Build new business models
3) Strengthening links between SRA’s proprietary IP product business and overseas operations
9Summary of Consolidated Financial Results for the Year Ended March 31, 2016

•Expand SRA’s line of proprietary IP products for growth sectors, and vigorously develop efforts that target
emerging markets overseas.

2. Further enhancing shareholder returns
1) Re-evaluate the consolidated payout ratio and shareholder dividends• Incrementally raise the consolidated payout ratio, aiming for 50% in the final year (period ending March 2018).
2) Continuously raise ROE, an indicator of efficient utilization of shareholder equity.
•Stably and continuously secure ROE of 10% or higher(4) Issues to Be Addressed by the Company
The SRA Holdings Group will undertake the following specific tasks to enhance corporate and shareholder value,
promote earnings structure reform (secure the industry’s top level operating profit ratio), and establish a high-income
model.
1. Raise the profitability of existing businesses
1) Further raise gross profit margins•Eliminate large-scale unprofitable projects, raise precision of project management, continuously reduce production
overhead costs and ensure the appropriate number of production personnel
2) Improve SG&A-to-sales ratio• Increase sales efficiency through implementation of an account manager system.
• Reduce operational costs at SRA Professional Service, which handles Head Office staff and shared services3) Expand orders and sales volume• Increase the proportion of orders and sales accounted for by current customers through further cultivation of theexisting SRA customer base.

2. Transforming the SRA business model
1) Promote convergence between SRA’s proprietary IP product business and higher added value in existing
operations.
2) Develop new business models (own IP products, new services) that target such growth sectors as the IoT, mobile,
security, cloud computing, Big Data/analytics and social technologies markets.

3. Strengthening links between SRA’s proprietary IP product business and overseas operations• Increase own IP products for new fields while undertaking businesses that target overseas markets, which are
growth markets.

10Summary of Consolidated Financial Results for the Year Ended March 31, 2016(5) Other Important Management Matters
None

3. Basic Thinking Concerning Adoption of Accounting Standard
In preparation for the future adoption of International Financial Reporting Standards (IFRS), discussion isprogressing regarding the establishment of in-house manuals and guidelines and the timing of adoption.

11

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)FY2014(as of March 31,2015)

FY2015(as of March 31,2016)

ASSETS
Current assets:
Cash and deposits

8,672

8,813

Notes and accounts receivable—trade

6,223

6,884

Short-term investment securities

3,392

509

Merchandise and finished goods

784

751

Work in process

1,677

1,387

Short-term loans receivable

1,767

139

Accounts receivable—other

175

2,641

Deferred tax assets

658

569

Other

801

528

Allowance for doubtful accounts

(27)

(19)

24,12622,204

Buildings

317

334

Accumulated depreciation

(231)

(251)

Buildings, net

85

82

Machinery, equipment and vehicles

566

555

Accumulated depreciation

(510)

(509)

Machinery, equipment and vehicles, net

55

46

Other

113

114

Accumulated depreciation

(78)

(83)

Other, net

35

31

Total property, plant and equipment

175

160

–

55

520

1,061

520

1,117

Investment securities

4,177

5,746

Long-term loans receivable

1,060

1,937

Deferred tax assets

1,243

1,005

Guarantee deposits

324

338

Net defined benefit asset

44

46

Other

171

565

Allowance for doubtful accounts(12)(1,282)

Allowance for investment loss

(118)

(16)

Total investments and other assets

6,891

8,341

Total current assets
Noncurrent assets:
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

12Summary of Consolidated Financial Results for the Year Ended March 31, 2016

Total noncurrent assets

7,588

9,619

Total assets

31,714

31,82313

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Millions of Yen)FY2014(as of March 31, 2015)

FY2015(as of March 31, 2016)

LIABILITIESCurrent liabilities:
Accounts payable—trade

3,465

3,288

Short-term loans payable

1,179

1,179

Accrued expenses

593

811

Income taxes payable

880

779

Accrued consumption taxes

621

507

Provision for bonuses

568

559

Provision for directors’ bonuses

53

60

Provision for loss on construction contracts

662

415

–

5

714

1,300

8,739

8,906

2

–

3,957

3,953

Provision for directors’ retirement benefits

140

144

Other

15

–

4,116

4,097

12,85513,004

Capital stock

1,000

1,000

Capital surplus

4,468

4,524

Retained earnings

15,288

14,790Treasury stock(2,727)(2,628)

Total shareholders’ equity

18,03017,686

Valuation difference on available-for-sale securities

594

992

Foreign currency translation adjustments

585

457

Remeasurements of defined benefit plans

(375)

(347)

Total accumulated other comprehensive income

804

1,102

25

30

Total net assets

18,85918,819Total liabilities and net assets

31,714

31,823

Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Deferred tax liabilities

Net defined benefit liability

Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

14

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of Yen)FY2014(April 1, 2014March 31, 2015)
36,535FY2015(April 1, 2015March 31, 2016)
39,155

Cost of sales

29,85031,638Gross profit

6,685

7,517

Selling, general and administrative expenses

3,637

3,780

Operating income

3,047

3,736

Interest received

202

205

Dividends received

31

34

Foreign exchange gains

357–

Guarantee commission received

119

7

Other

100

121

Total non-operating income

812

370

Interest expenses

25

29

Foreign exchange losses–

208

Stock transfer agency service fee

21

16

Other

0

1

Total non-operating expenses

46

256

3,813

3,850

Gain on sales of investment securities

19

20

Gain on reversal of subscription rights to shares

21

0

Other

2

1

Total extraordinary income

43

23

Loss on retirement of noncurrent assets

1442

Loss on valuation of investment securities

825

657

Provision of allowance for doubtful accounts

–

1,271

Other

34

2

Total extraordinary loss

874

1,973

Income before income taxes and minority interests

2,981

1,899

Income taxes-current

1,475

1,290

Income taxes-deferred

(132)

145

Total income taxes

1,343

1,436

Net income

1,638

463

Profit attributable to owners of the parent

1,638

463

Net sales

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

15

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Consolidated Statements of Comprehensive Income)(Millions of Yen)FY2014(April 1, 2014March 31, 2015)
1,638

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments

FY2015(April 1, 2015March 31, 2016)
436

356

397

355

(127)

Remeasurements of defined benefit plans, net of tax

23

28

Total other comprehensive income

735

298

Comprehensive income

2,373

761

(breakdown)Comprehensive income attributable to parent
company shareholders
Comprehensive income attributable to non-controllinginterests

2,373

761

–

–

16

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(3) Consolidated Statements of Changes in Net Assets
FY2014 (April 1, 2014-March 31, 2015)(Millions of Yen)
Shareholders’ equity
Total

CapitalCapitalRetained

Treasurystock

surplusearnings

stock

shareholders’equityBalance at beginning of period

1,000

4,475

14,332(2,826)

16,982

Changes of items during the period
Dividends from surplus

(682)

(682)

Profit attributable to owners of the parent

1,638

1,638

Purchase of treasury stock
Disposal of treasury stock

(7)

(0)

(0)

99

92

Net change of items other thanshareholders’ equity

–

(7)

956

99

1,048

1,000

4,468

15,288(2,727)

18,030Total change during the period
Balance at the end of current period

Accumulated other comprehensive income
Valuation

Balance at beginning of period

difference on

currency

available-for-translation

sale securities

adjustment

238

Remeasure-Totalments ofaccumu-definedlated otherbenefitcomprehen-plans

sive income

Subscription

Foreign

229

(399)

68

Total netrights toassetsshares32

17,083

Changes of items during the period
Dividends from surplus(682)

Profit attributable to owners of the parent

1,638

Purchase of treasury stock(0)

Disposal of treasury stock92

Net change of items other thanshareholders’ equity

356

355

23

735

(7)

728

Total change during the period

356

355

23

735

(7)

1,776

Balance at the end of current period

594

585

(375)

804

25

18,85917

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

FY2015 (April 1, 2015-March 31, 2016)(Millions of Yen)
Shareholders’ equity
Total

CapitalCapitalRetained

Treasurystock

surplusearnings

stock

shareholders’equityBalance at beginning of period

1,000

4,468

15,288(2,727)

18,030Changes of items during the period
Dividends from surplus

(759)

(759)

Profit attributable to owners of the parent

463

463

Purchase of treasury stock
Disposal of treasury stock

56

Change of scope of consolidation

(0)

(0)

98

155

(202)

(202)

Net change of items other thanshareholders’ equity
Total change during the period
Balance at the end of current period

1,000

56

(498)

98

(343)

4,524

14,790(2,628)

17,686

Accumulated other comprehensive income
Valuationdifference

Remeasure-Totalments ofaccumu-definedlated otherbenefitcomprehen-plans

sive income

Foreignoncurrency

available-fortranslation-sale

adjustment

Subscription

Total netrights toassetssharessecurities

Balance at beginning of period

594

585

(375)

804

25

18,859Changes of items during the period
Dividends from surplus(759)

Profit attributable to owners of the parent

463

Purchase of treasury stock(0)

Disposal of treasury stock

155

Change of scope of consolidation(202)

Net change of items other thanshareholders’ equity

397

(127)

28

298

5

303

Total change during the period

397

(127)

28

298

5

(40)

Balance at the end of current period

992

457

(347)

1,102

30

18,81918

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(4) Consolidated Statements of Cash Flows(Millions of Yen)FY2014(April 1, 2014March 31, 2015

FY2015(April 1, 2015March 31, 2016

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

2,981

1,899

389

388

Amortization of goodwill–

27

Increase (decrease) in net defined benefit liability

31

(4)

Increase (decrease) in provision for directors’ retirement benefits

(21)

3

Increase (decrease) in provision for bonuses

17

(8)

Increase (decrease) in provision for directors’ bonuses

3

7

Increase (decrease) in allowance for doubtful accounts

(0)

1,261

Increase (decrease) in allowance for investment loss

(0)

(102)

(234)

(240)

Interest expenses

25

29

Loss (gain) on valuation of investment securities

825

656

Loss (gain) on sales of investment securities

(19)

(20)

Loss on retirement of noncurrent assets

1442

Decrease (increase) in notes and accounts receivable—trade

715

(678)

Decrease (increase) in inventories

(729)

322

Increase (decrease) in notes and accounts payable—trade

204

(159)

Increase (decrease) in other liabilities

(175)

873

Increase (decrease) in accrued consumption taxes

365

(113)

Other, net

(113)

440

Subtotal

4,279

4,626

Interest and dividends income received

161

171

Interest expenses paid

(24)

(29)

Income taxes paid

(1,125)(1,274)

Net cash provided by operating activities

3,290

3,493

(300)

–

–

300

(62)

(27)

0

0

Purchase of intangible assets

(141)

(800)

Purchase of investment securities(940)(1,423)

Proceeds from sales of investment securities

255

164

Purchase of stocks of subsidiaries and affiliates

–

(383)

Payments of loans receivable

(898)

(597)

Collection of loans receivable

443

72

Payments into time deposits

(100)

(100)

Payments for guarantee deposits

(3)

(10)

Proceeds from collection of guarantee deposited57

1

Depreciation and amortization

Interest and dividend income

Net cash provided by (used in) investing activities:
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

19

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

Other, net

63

(5)

(1,626)(2,809)Net increase (decrease) in short-term loans payable

(30)

–

Repayments of long-term loans payable

(300)

–

(0)

(0)

(682)

(759)

Proceeds from exercise of stock option

80

143

Other

(0)

(0)

(932)

(616)

Effect of exchange rate changes on cash and cash equivalents

151

(58)

Net increase (decrease) in cash and cash equivalents

883

8

7,909

8,792

–

31

8,792

8,833

Net cash used in investing activities
Net cash provided by (used in) financing activities:

Purchase of treasury stock
Cash dividends paid

Net cash used in financing activities

Cash and cash equivalents at beginning of period
Change of scope of net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at the end of period20Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Change in accounting policies)(Adoption of Accounting Standard for Business Combinations, etc.)
Effective from the fiscal year ended March 31, 2016, the Company adopted the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013; hereinafter, “Business Combinations AccountingStandard”), Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13,
2013; hereinafter, “Consolidated Financial Statements Accounting Standard”), and “Accounting Standard forBusiness Divestitures” (ASBJ Statement No. 7, September 13, 2013; hereinafter, “Business Divestitures AccountingStandard”). Under this new application of these standards, differences caused by changes in the Company’s equity
shares in subsidiaries for which it has continued controlling interests will be adjusted as capital surplus, andacquisition-related expenses shall be recorded as expenses in the fiscal year in which the costs are incurred.
Regarding business combinations implemented on or after the beginning of the fiscal year ended March 31, 2016, theCompany changed to a method to reflect the revision in the allocation of acquisition costs arising from confirmationof the provisional accounting treatment on the consolidated financial statements of the fiscal year that includes thedate of the business combination. Additionally, the Company changed net income to profit attributable to owners of
the parent and also changed minority shareholders to non-controlling interests. To reflect these changes, the Company
has reclassified its consolidated financial statements for the previous fiscal year.
The Company has adopted and will continue to apply these standards in the future from the beginning of the fiscal
year ended March 31, 2016 in accordance with the transitional treatments stipulated in the provisions of Article 58-2
(4) of Accounting Standard for Business Combinations, Article 44-5 (4) of Accounting Standard for Consolidated
Financial Statements, and Article 57-4 (4) of Accounting Standard for Business Divestitures. The adoptions of thesestandards had no material impact on the Company’s consolidated financial statements in the year ended March 31,
2016.

(Change in presentation method)(Consolidated balance sheets)
Because of increased monetary importance, Accounts receivable-other, which was included within Other in Current
assets in the previous fiscal year, is listed independently from the current fiscal year. To reflect this change inpresentation method, the Company has reclassified the consolidated financial statements for the previous fiscal year.
As a result, ¥977 million expressed as Other under Current assets in the previous fiscal year has been
reclassified as Accounts receivable-other of ¥175 million and Other of ¥801 million.

21

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

Segment Information and Others
Segment Information
1. Summary of Reporting Segments
The SRA Holdings Group’s reporting segments are those for which financial information separate from that of other units
comprising the SRA Holdings Group can be obtained. Periodic reviews are made of reporting segments by the Board of
Directors for determining the allocation of management resources and assessment of business results.
The Company carries out overall management of subsidiaries engaged in the three businesses of “Systems
Development,” “System Operations and Infrastructure Development” and “Product Sales.” Therefore, the SRA HoldingsGroup’s three reporting segments are “Systems Development,” “System Operations and Infrastructure Development” and“Product Sales.”Principal contents of business in each segment
Business segment

Content of businessIntegrated system development ranging from defining requirements todevelopment and maintenance of mainframe-based large systems



System integration covering system planning, development andintroduction of open systems

Systems Development



Solutions business offering business tools that utilize various products
and tools

Open source business that offers technical support for systems
through open source software

SystemOperations

andInfrastructure Development

Product SalesOperation management of computer systems and network systems

Overall operation that includes data management and facilities
management

Building of network systems



Outsourcing services

Sales of packaged software that includes licensingSales of system devices, centering on servers, in integration servicesConsulting services related to the introduction of IT

2. Accounting Treatment Method of Net Sales and Income or Losses, Assets, Liabilities and Others for Each
Reporting Segment
The accounting treatment method for the reporting business segments is the same as that described in Principal Items that
Serve as the Basis for Preparing the Consolidated Financial Statements.
Inventories are valued at an amount prior to the writing down of carrying value.
The figures for segment profits are on the basis of operating income.
Intersegment sales or transfers are based on current market prices.

22

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

3. Information Concerning Net Sales and Income or Losses, Assets, Liabilities and Others for Each Reporting
Segment
Fiscal 2014 (from April 1, 2014 to March 31, 2015)(Millions of Yen)
AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product
Sales

Total

Adjustment

theamount*1

consolidated
statements ofDevelopment

income *2

Sales(1) Sales to19,2883,894

13,35336,535－36,535

31

264

554

851

(851)

－

Total sales

19,3194,159

13,90837,386(851)

36,535

Operating income

2,306

925

1,066

4,298

(1,250)3,047

Assets

8,516

1,382

4,622

14,521

17,19331,714

121

12

251

386

3

389

69

15

126

212

2

214

customers(2) Intersegment
sales ortransfers

OthersDepreciation
Increase of
tangible andintangible
assets
Notes:
1. The adjustment amounts are as follows:(1) The segment income adjustment of minus ¥1,250 million is a company-wide expense not apportioned to any reporting
segment. Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any
reporting segment.
(2) Total Company assets amounted to ¥17,523 million for the fiscal year. These consisted mainly of the SRA HoldingsGroup’s surplus operating assets (cash, deposits and marketable securities), short-term loans receivable, long-term
invested assets (investment securities and long-term loans receivable) and deferred tax assets.
(3) Depreciation expenses and increases of tangible and intangible assets included depreciation and additions to long-term
prepaid expenses, respectively.

2. Segment operating income is adjusted in operating income on the consolidated statements of income.

23

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

Fiscal 2015 (from April 1, 2015 to March 31, 2016)(Millions of Yen)
AmountSystemrecorded on

Operations

Systems
Development

Product

andInfrastructure

Total

Sales

Adjustment

theamount*1

consolidated
statements ofDevelopment

income *2

Sales(1) Sales to
20,901

3,978

14,275

39,155－

39,155

37

292

328

658

(658)

－

Total sales

20,9394,270

14,60439,813(658)

39,155

Operating income

2,838

947

1,113

4,900

(1,163)

3,736

Assets

8,813

1,330

5,809

15,953

15,87031,823

59

8

312

380

3

384

－

－

27

27

－

27

26

3

796

826

－

826

customers(2) Intersegment
sales ortransfers

OthersDepreciation

Amortizationof goodwill

Increase of
tangible andintangible
assets
Notes:
1. The adjustment amounts are as follows:(1) The segment income adjustment of minus ¥1,163 million is a company-wide expense not apportioned to any reporting
segment. Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any
reporting segment.
(2) Total Company assets amounted to ¥16,235 million for the fiscal year. These consisted mainly of the SRA HoldingsGroup’s surplus operating assets (cash, deposits and marketable securities), short-term loans receivable, long-term
invested assets (investment securities and long-term loans receivable) and deferred tax assets.
(3) Depreciation expenses and increases of tangible and intangible assets included depreciation and additions to long-term
prepaid expenses, respectively.

2. Segment operating income is adjusted in operating income on the consolidated statements of income.

24

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Significant Subsequent Events)
The Board of Directors of Company subsidiary Software Research Associates, Inc. (hereafter SRA) convened on
April 14, 2016 and resolved to conclude contracts for business and capital alliances with Tagit Pte. Ltd.
(headquarters: Singapore; CEO: Sandeep Bagaria; hereafter Tagit).
1. Purpose and overview of business allianceWith a view toward FinTech*1, SRA will collaborate with Tagit, which has an abundance of achievements infinancial fields in the Asia region, and will develop “Own IP products” that utilize SRA’s strengths, namely its
specialized knowledge and know-how in financial fields. The companies will offer products and services targeting
Japan-affiliated and local major banks in the Asia region (Singapore, Malaysia, India, etc.), which is a growing
market. By providing associated maintenance services as well, the companies will also strive to link this business to“recurring revenue–based operations” that provides stable and long-term profits. In the next stage, plans also call for
expanding business into fields such as wealth management*2 and to develop business in promising non-financial
fields (healthcare, etc.).
*1. FinTEch: FinTech is a portmanteau word combining the words finance and technology and is a new financial-related
service that utilizes IT.
*2. Wealth Management: Comprehensive financial services targeting the affluent class.

2. Purpose and details of capital alliance
Under the capital alliance, the Company provided a loan (with share conversion rights) as detailed below through
SRA IP Solutions (Asia Pacific) Pte. Ltd. (headquarters: Singapore), an SRA Holdings Group company, for the
purposes of raising the effectiveness of the business alliance between both companies and further building close
cooperative relations and a relationship of trust.
3. Schedule for the business alliance and capital alliance
April 14, 2016: SRA Board of Directors resolution
April 14, 2016: “Business alliance contract” and “loans with conversion rights contract” concluded
April 15, 2016: Loan executed (S$6 million)

25

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

(Additional information)(Lawsuits)
1. Regarding the filing of a lawsuit for contract payment and damages(1) Cause and course of events leading to the lawsuit
Company subsidiary Software Research Associates, Inc. (hereafter SRA) carried out work based on multiple
contracts concerning the “Building of a Next-Term Core System” that were concluded with Sanko Estate Co., Ltd.
(hereafter Sanko Estate). However, on April 11, 2014 Sanko Estate notified SRA that it was cancelling theabove-mentioned contracts on the grounds of a debt default. SRA explained it had not defaulted on debt. However,
Sanko Estate refused receipt of cooperative development work and deliverables and refused SRA’s request for
payment. With no expectations for any progress in this situation at this rate and based on the belief that entrusting the
judicial system to make a decision was appropriate, a resolution was passed at the SRA Board of Directors, and on
August 25, 2015 SRA filed a lawsuit for contract payment and damages.
(2) Point of lawsuit and claimed amount1) Court where lawsuit filed and dateTokyo District Court on August 25, 2015
2) Party against which lawsuit was filed (defendant)
Name Sanko Estate Co. Ltd.
Address: Sanwa Building 6-1-4 chome, Ginza, Chuo-ku, Tokyo
Representative: Mitsuhiro Taneda, President
3) Details of pertinent lawsuit
Claim for contract payment and damages (total amount of claim: ¥499,186,500) concerning “Building of a
Next-Term Core System” for Sanko Estate as well as a claim for delinquent damage charges based on the commercial
statutory rate of interest for the amount of the claim.
(3) Regarding the filing of a lawsuit by Sanko Estate against the previously mentioned filing of a lawsuit for contract
payment and damage claims
1) Court where lawsuit filed and dateTokyo District Court on October 6, 2015
2) Details of lawsuit and amount of claim
Sanko Estate filed a claim (total amount of claim: ¥440,826,028) on the grounds of debt default on the commissioned
contract for Sanko Estate’s “Building of a Next-Term Core System” as well as a claim for delinquent damage charges
based on the commercial statutory rate of interest for the amount of the claim.
(4) Future outlook
The Company recognizes that there is no basis for the claim by Sanko Estate and in this litigation will take a firm
stance in asserting its rightfulness. At the present time, this lawsuit will have no material impact on the Company’s
consolidated business results for the fiscal year ended March 31, 2016. In accordance with the progress of theselawsuits, we will promptly provide information on any matters requiring disclosure.

2. Regarding the filing of a damage lawsuit
SRA, a Company subsidiary, filed a damage lawsuit against Happinet Corporation (hereafter Happinet) on March 31,
2011. In response, Happinet filed a lawsuit against SRA in the Tokyo District Court on April 6, 2011. These cases are26

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

currently being litigated. In accordance with the progress of the lawsuits, we will promptly provide information on
any matters requiring disclosure.

27

Summary of Consolidated Financial Results for the Year Ended March 31, 2016

5. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the fiscal year ended March 31, 2016 is as follows.
Consolidated cumulative total for
Segment information by type of businessfiscal 2015 (from April 1, 2015 to% change YoY

March 31, 2016)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

23,734

123.0

3,961

101.3

27,696

119.3

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(2) Purchase amounts
Purchases by segment in the fiscal year ended March 31, 2016 are as follows.
Consolidated cumulative total for
Segment information by type of businessfiscal 2015 (from April 1, 2015 to% change YoY

March 31, 2016)
Product Sales (Millions of Yen)

8,239

92.7

Total (Millions of Yen)

8,239

92.7

Notes:
1. Amounts are based on purchase price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

28

Summary of Consolidated Financial Results for the Year Ended March 31, 2016(3) Status of orders
Status of orders by segment in the fiscal year ended March 31, 2016 is as follows.
OrdersSegment information by type of business

Order backlog

received% change YoY(Millions of% change YoY

Yen)

Yen)
Systems Development(Millions of

21,063

109.2

4,575

103.7

3,991

102.9

1,621

100.8

Product Sales

13,041

86.9

3,147

71.8

Total

38,097

99.8

9,344

89.8

System Operations and Infrastructure
Development

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(4) Sales amounts
Sales by segment in the fiscal year ended March 31, 2016 are as follows.
Consolidated cumulative total for
Segment information by type of businessfiscal 2016 (from April 1, 2015 to % change YoY
March 31, 2016)
20,901

108.4

3,978

102.2

Product Sales (Millions of Yen)

14,275

106.9

Total (Millions of Yen)

39,155

107.2

Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

29